Error made on PAYE return: recourse

Q: We
have had continuous problems with SARS trying to sort a matter out for a
client tax return 2011. The client attempted to complete his own
return, when completing the PAYE he made a mistake and put in 1698
in place of 16986. He only became aware of the problem when SARS started
calling him about his outstanding account. He then approached our firm
in May 2013 for help. We have filed several objections and asked SARS to fix
the error. Needless to say with no avail.

A: You
may request that the assessment be reduced in terms of s93 of the Tax
Administration Act as it seems that the error relates to an "undisputed
error”. The prescription rules in terms of s 104 does not apply (as you are
not objecting to the assessment) and SARS may make a reduced assessment
within 3 years after the date of the original or subsequent assessment.

93. Reduced assessments.—(1) SARS
may make a reduced assessment if—(a) the taxpayer successfully disputed the
assessment under Chapter 9; (b) necessary to give effect to a settlement
under section 149;(c) necessary to give effect to a judgment pursuant to an
appeal under Part E of Chapter 9 and there is no right of further appeal; or
(d) SARS is satisfied that there is an error in the assessment as a result of
an undisputed error by— (i) SARS; or (ii) the taxpayer in a return. (2) SARS
may reduce an assessment despite the fact that no objection has been lodged
or appeal noted.

WHY REGISTER WITH SAIT?

Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.